Unit 1 – Third-Party Rights and Interests in Land
Fixtures and Chattels
Definitions
Land – defined in s 205 (1)(ix) Law of Property Act 1925 (check textbook)
Fixture – an item treated as part of the land.
Chattel – personal items that belong to the individual.
Describe the ‘two tests’ in Berkley v Poulett:
1. The method and degree of annexation.
a. Raises a rebuttable presumption that a strong degree of physical annexation of the chattel means it’s a fixture.
b. If an item can be removed without causing serious damage to property = a chattel.
2. The object and purpose of the annexation.
a. CONCLUSIVE TEST.
b. If the item is to enhance realty = fixture.
c. Rebuttable - If the item is affixed for the purpose of enjoying the item itself better, it will be considered a chattel.
Case law:
D’Eyncourt v Gregory
o Free standing items that can be removed easily are fixtures if they are considered part of the architectural design of the property;
E.g. tapestries fixed into panelling in the walls; a particular portrait hung in a certain location; carved kneeling figures in the great hall and sculptured
marbled vases in the hall; the lions at the head of the steps in the garden and the 16 stone seats in the garden.
A house that is not movable without destruction is a fixture (Elitestone v Morris)
Fitted carpets, curtains, light fittings and standard size ‘white goods’ are chattels but fitted kitchen units are fixtures (Botham).
If pictures are hung up merely to display them, they are chattels (Leigh v Taylor).
THIRD PARTY INTEREST
Step 1: What type of third-party right is it?
Step 2: Is it capable of being legal?
YES – must fall under s1(1) or 1(2) of the LPA 1925
Freehold (s 1(1)(a) LPA 1925)
, Leasehold (s 1(1)(b) LPA 1925)
Easement (s 1(2)(a) LPA 1925)
Mortgage (s 1(2)(c) LPA 1925)
NO – all other estates, interests and charges in or over land take effect as equitable interests = s 1(3) LPA 1925
Step 3: Has the right been created by the correct formalities?
Type of Right Formalities
Legal Estates (s 1(1) LPA 1925) Freehold (s1(1)(a) LPA 1925) Deed (s 52 LPA 1925)
Rules for deed (s 1 LP(MP)A 1989):
o Make it clear on the face of the document that it is
intended to be a deed.
o Be signed, witnessed and delivered.
If deed fails, check if estate contract.
Leasehold (s 1(1)(b) LPA 1925) Deed as above BUT EXCEPTION for parol lease where a deed is not
Needs to be: necessary. Must satisfy four conditions (s 54 LPA 1925):
- term certain o Three years or fewer.
- exclusive possession (see definition). o Must take effect immediately in possession.
o Granted at the best rent which can be reasonably
Subject to registration obtained (market rent)
o Without a premium: the tenant pays the landlord a lump
sum at the beginning of the lease.
If deed has failed could be equitable lease – ‘equity will
recognise…’
Legal Interests (s1(2) LPA 1925) Easement (s 1(2)(a) LPA 1925) For it to be legal it MUST be equivalent to freehold/leasehold.
o Must last forever or a fixed duration.
Deed (s 52(1) LPA 1925)
Mortgage (s 1(2)(c) LPA 1925) Deed (see above)
Equitable Interests (s 1(3) LPA 1925) Trusts Express trusts: declaration of trust must be evidenced in writing
and signed (s 53(1)(b) LPA 1925)
Implied trusts: arise without formalities (s 53(2) LPA 1925)
o Implied trust detail in Unit 4
, Restrictive Covenants Minimum formality: in writing and signed (s 53(1)(a) LPA 1925)
Estate Contracts In writing, signed by both parties and contains all the agreed
terms (s 2 LP(MP)A 1989).
Converts leases to equitable leases.
Equitable Lease Can arise due to failure to use deed when granting lease.
Must be signed and made in writing and contain all terms (s 2
LP(MP)A 1989)
If requirements are met equity will enforce such a contract by
granting the tenant an order for specific performance.
Tenant will have an equitable lease under the doctrine in Walsh v
Lonsdale.
Equitable Easement Minimum formality: signed writing (s 531(a) LPA 1925)
Statutory Right Right of Occupation (s 30 Family Law Act 1996) No formalities but criteria in s 30 have to be fulfilled:
o marriage still legally in existence.
o legal owner is alive.
o home is/intended to be/was matrimonial home.
s 31(10)(b) FLA 1996: right of occupation cannot be an overriding interest.
Unit 2 – Enforceability of Third-Party Interests (Unregistered System)
Step 1: Identify the third-party right being claimed?
See above + is it registerable.
NOTE: Not all third-party rights can be registered on the Land Charges Register. The third-party rights that are registrable at the Land Charges Department are listed in s 2
of the LCA 1972 (see below)
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